small non-profit sports club

eskimalita7

Hello
Apologies this is not strictly a charity question.
Short version: should surplus club funds be used for adhoc gifting (60th present, new baby, get well soon)? if not what should we do with surplus funds (too little to reinvest in improving facilities, we already have enough equipment etc).

long version:
I help run a small sports club, both junior and senior sections. Fees are very minimal, and most of our spend goes on fixed costs of coaching, league fees, a training venue, umpires etc, which are all set in advance for the season so nothing is a surprise.

We have some small reserves built up over 20 years.
Then we have some variable costs:
AGM: approx £200 a year on food for our AGM to encourage members to attend. venue hire fee varies.
gifting: get well soon presents, and thank you presents at the end of the season etc

In order to keep track of this gifting I have asked committee members to do the following steps:
drop the chairman and treasurer a quick message seeking approval before purchase,
this means we have a record to make sure two people don't purchase the same gift etc
provide an itemised receipt once purchased
treasurer reimburses

committee members are not consistent in what they buy: a thank you for this person, but not that person, a new baby gift for one player but not another etc. a 60th is important but a 21st is not. In the past I know a committee member claimed using a bank screenshot, and not an itemised receipt. The gift given was not the value of the receipt (about £30 out). I suspect she bough cigarettes for herself.

I want to apply for some charity grants to improve our playing surface. In order to apply the accounts need to be independently audited. I have asked for the simple steps above so that the accounts can be audited at the end of the next financial year. I am getting a lot of pushback and I am being told I need to stop interfering. I have been elected by a committee who are now telling me not to interfere. 

They are congratulatory when I make improvements to the club but very hostile when I request small changes like this, even when I explain why.

I believe the small steps I ask are the norm for all small non-profit clubs. Can anyone confirm?

We take in money from parents for the junior section, and adults who play in the senior section. I feel a moral and ethical responsibility to have some audit trail over where excess money is being spent.

My next step is to set some guidelines as to who qualifies for a get well soon gift, what birthdays qualify for presents etc. I am terrified of the pushback I will get after this.

clive0510

Its a thankless task running a organisation such as you do. The chairman of our village hall is about to give it up, and they are looking for someone to takeover. and my name has been put forward for that. but I'm not sure I want all the aggro that goes with it. and as you quite rightly say what do you do with any surplus funds at the end of each month, and how do you account for it. 

p00hsticks

I have no legal perspective, but belong to a small non-profit sporting organisation myself - by the sound of it smaller than yours - and although not on the committee myself attend most of the committee meetings and know the committee members well.

Personally I wouldn't approve of any gifts such as the ones you mention (birthday , new baby etc) coming directly out of club funds, although if members wanted to have a whip round and chip in then fine.

The only sort of payments of that sort we'd fund from the club would be perhaps a small thank you for retiring committee members, small prizes or medals for any in-house competitions we might run, and perhaps a small amount to generate further funds such as prizes for a raffle or similar. 

maman

I'm the chair of a similar group (a dance group which is a registered charity) and we always have the accounts audited. It's been the same in all such groups I've been a member of. You can't be too careful when handing other people's money. 

We have a small committee in this current group (6) and always email when a gift is considered. We don't do birthdays or anything like that but some thank you gifts (usually a bottle of wine). For example, someone recently transferred all our old CDs onto the iplayer. 

powerspowers

I think your proposals  sound sensible- the committee is responsible for other peoples money and the accounts should be available as part of the AGM. I feel more comfortable with thank you gifts or a set budget for awards eg outstanding contribution as opposed to birthdays etc. 
I also agree it’s thankless, I’ve just stepped down from a secretary role with a youth group as I can’t take it any longer

Savvy_Sue

Are you the treasurer? You need them on side, and the chair, and together you present a united front. If they don't like it, you have no hope for your perfectly standard, normal and reasonable requests!

cr1mson

Please be very careful at getting too involved as assuming that this club is unincorporated association which means individual members are personally responsible for debts and contractual liabilties. 

So do tread carefully! 

eskimalita7

thank you all for your responses which are very helpful and assure me that I am not loopy. Many of you are quite right in highlighting that its a thankless task being a volunteer in such organisations. 

onomatopoeia99

cr1mson said:

Please be very careful at getting too involved as assuming that this club is unincorporated association which means individual members are personally responsible for debts and contractual liabilties. 

So do tread carefully! 

This - a "club" has no legal status so no protection for its members and particularly its committee.  This is why many clubs go down the route of becoming companies limited by guarantee and the committee members then become the company directors.  I am a member of such a club and for couple of decades was on its committee.  No spending was made without committee approval / oversight, the committee are (or should be) accountable to the membership for how the money the members pay in is used.

We didn't buy gifts, occasionally flowers and a card were sent to a bereaved spouse / partner on the death of a longstanding member, but only after a formal motion and vote at committee.

daveyjp

Finances should be formalised and audited, otherwise as you are finding out it ends up costing money in lost opportunities for grants.

I'd also look into a proper set up as a business to minimise exposure to action against individuals.  A CASC is a common model as it gives you some of the benefits of charitable status without the red tape of being a charity.

Undervalued

onomatopoeia99 said:

cr1mson said:

Please be very careful at getting too involved as assuming that this club is unincorporated association which means individual members are personally responsible for debts and contractual liabilties. 

So do tread carefully! 

This - a "club" has no legal status so no protection for its members and particularly its committee.  This is why many clubs go down the route of becoming companies limited by guarantee and the committee members then become the company directors.  I am a member of such a club and for couple of decades was on its committee.  No spending was made without committee approval / oversight, the committee are (or should be) accountable to the membership for how the money the members pay in is used.

We didn't buy gifts, occasionally flowers and a card were sent to a bereaved spouse / partner on the death of a longstanding member, but only after a formal motion and vote at committee.

I belong to a couple of sport / recreational clubs where this would be the case.

However as both are affiliated to the national body that provides, amongst other things, insurance cover for committee members in exercising their duties.

I think this is fairly common so it would be worth investigating if there is a relevant body to which your club could affiliate.